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Greek Bond Deal: Too Good to Last

Greece’s second bailout, agreed by euro-zone leaders on July 21, appears daily more likely to be heading for renegotiation. Readers will recall that the deal included a bond exchange that provided a private-sector contribution to the bailout that was so important to Germany. At the time, the exchange was considered a pretty sweet deal for bondholders, given the depth of Greece’s debt troubles. Three months on, it looks even uglier from the other end of the telescope, for three main reasons.